What is debt-equity ratio

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1. Suppose a five year, $1000 bond with annual coupons has a price of $903.75 and a yield to maturity of 5.5%. What is the bonds coupons rate?

2. A 5-year bond pays interest annually. Its par value is $1,000 and its coupon rate equals 7%. If the market’s required return on the bond is 8 percent, what is the bond’s market price?

3. A firm has a debt-equity ratio of 0.36. What is the total debt ratio?

Reference no: EM131987804

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